In the last several chapters, you have learned about many aspects of organizational structure, budgeting, and performance evaluation. None of these company characteristics operates in isolation. They all interrelate to form an organization’s culture and influence employee morale. The following table has several combinations of organizational structure and budgeting preparation style:
Organizational Structure .... Budget Creation Process
Centralized ........... Top Down
Decentralized .......... Participative
Centralized ........... Participative
Decentralized .......... Top Down

For each combination in the table, write a brief paragraph summarizing both the potential advantages and disadvantages for a company using the combination. Consider the impact on managers and other employees as well as the potential impact on outside parties such as customers or other organizational stakeholders.

  • CreatedFebruary 27, 2015
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